Elon Musk says he will get record-breaking $56 billion bonus

Tesla chief executive Elon Musk has said he is in line for a record-breaking payout worth roughly a quarter of his net worth.

Tesla shareholders will vote on Thursday on whether the world’s third richest person will receive $56 billion (£44bn) as part of a performance-based deal first agreed in 2018. They will also vote on whether to move the company’s headquarters to Texas.

“Both Tesla shareholder resolutions are currently passing by wide margins,” he wrote in a post to X. “Thanks for your support!!

Earlier this year, a judge in the US state of Delaware, where Tesla is incorporated, voided the pay deal after an investor sued on the issue, with the judge ruling that the sum was unfair and the process to award it to Mr Musk – which was made by a board controlled by the entrepreneur – was described as “deeply flawed”.

Tesla called that decision “inconsistent with the will of the stockholders” and submitted the deal to another vote, alongside a measure to consider moving the company’s legal headquarters outside of Delaware.

The car maker has argued that Mr Musk deserves the pay package because he is crucial to the company’s success and has helped the firm achieve ambitious targets through his leadership, and that it is a necessary deal to ensure he remains committed to the company.

Mr Musk’s other businesses include SpaceX and social media platform, X, formerly known as Twitter.

Even if successful with the vote, Mr Musk could still face legal hurdles over the pay package, with some legal experts noting that it was unclear whether the Delaware court which blocked the deal would accept the result of the new vote, because it is not legally binding.

Mr Musk’s net worth is currently around $203bn, according to Bloomberg Billionaires Index.

Only Amazon founder Jeff Bezos and French entrepreneur Bernard Arnault are richer, with net worths of $209bn and $206bn respectively.

Additional reporting from agencies.